Intel releases 2023Q4 and full-year financial results

Intel disclosed its financial results for the fourth quarter of 2023, marking a pivotal shift with sequential and year-over-year growth after enduring several quarters of decline. However, the full-year financial report for 2023 painted a grimmer picture, with revenue and profits decreasing, signifying considerable strain on this semiconductor titan amid an industry downturn.

For the fourth quarter of 2023, Intel reported total revenues of $15.41 billion, a 10% increase compared to $14 billion in the same period last year. Net profits stood at $2.7 billion, a significant turnaround from a net loss of $700 million in the same quarter the previous year. The gross margin rose to 45.7%, surpassing last year’s 39.2% and the previous quarter’s 42.5%. Diluted losses per share were $0.63, compared to $0.16 in the same period last year and $0.07 in the previous quarter.

Breaking down by divisions, for the fourth quarter of 2023, the Client Computing Group (CCG) generated revenues of $8.84 billion, up 33% year-over-year and exceeding analysts’ expectations of $8.42 billion. The Data Center and Artificial Intelligence Group (DCAI) posted revenues of $4 billion, a 10% decline year-over-year and below the $4.08 billion forecast by analysts. The Network and Edge Group (NEX) revenues were $1.5 billion, down 24% year-over-year. Mobileye saw revenues of $637 million, up 13% year-over-year. Intel Foundry Services (IFS) reported revenues of $291 million, a 63% increase year-over-year.

Intel’s total revenue for 2023 was $54.2 billion, a 14% decrease from $63.1 billion the previous year. The gross margin fell to 40%, down 2.6 percentage points from 42.6% last year. Net profits plummeted to $1.7 billion, a staggering 79% decline from $8 billion last year.

Intel anticipates revenues between $12.2 and $13.2 billion for the first quarter of 2024, falling short of the market’s average expectation of $14.25 billion. The gross margin is also expected to decline to around 40.7%, with diluted earnings per share at $0.25. This pessimistic outlook, significantly below market expectations, has disappointed investors, prompting Intel’s executives to attempt to reassure investors during the earnings call.

Intel’s CEO, Pat Gelsinger, noted that core businesses such as PC and server chips had a lackluster performance. He believes that the weak outlook for the first quarter of 2024 is temporary, asserting that the momentum for new products and business remains strong. He anticipates continuous year-over-year growth in revenues and earnings per share for each quarter of the year.